2015/2016 ANNUAL REPORT
21
INTERVIEW WITH CHIEF EXECUTIVE OFFICER
the Group was advised by our auditors this year that the relevant benefit is the availability of
the vessel for use by the charterer and given its commitment to avail its vessels to its charterers
remains unchanged over the charter hire period, the conventional straight-line approach should
be applied to spread the income evenly over the charter period accordingly.
Taking the above into account, the Group has decided to accede to the straight-line revenue
recognition.
9.
Is the relevant benefit mentioned in Question (8) and your Note 3(z) different from
previous years? Why is it raised only this year but not so for the last financial year?
The relevant benefit to avail the vessels for use by the charterers had not changed. Notably, the
auditors had issued a clean opinion last year with reference to the Group’s revenue recognition
via the alternative treatment in accordance with its daily charter income under terms of the
charter contracts.
As mentioned in Question (8) above, this year the Group had a change in audit partner and we
were advised that given the significant impact of the full-year earnings for the 3 vessels, it is
more appropriate to spread the income evenly over the charter period notwithstanding nothing
has changed.
10.
Why are you making a restatement of the comparative figures for FY2015?
A restatement is necessary for the comparative figures to be consistent with the accounting
treatment adopted for FY2016. This will assist readers of our financial statements to understand
the scale of our business activities from year-to-year as we have accounted for the full year
earnings of the 3 new vessels in FY2016.
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